Devolved governments in Scotland and Northern Ireland are yet to make decisions on the future of university funding.

But the latest announcement was criticised by campaigners amid claims that English taxpayers are effectively being asked to subsidise cheaper courses elsewhere in Britain.

Funding for Wales is channelled through Westminster. But public spending per head was 14 per cent higher in Wales in 2007/8 than England, according to The TaxPayers’ Alliance.

Emma Boon, the group’s campaign director, said: “Graduates derive a significant financial gain across their lifetime from their degree and so it is right that they should contribute towards the cost of their university education.

“It’s completely unfair to expect those taxpayers who do not go to university to subsidise those who do, that includes English taxpayers funding Welsh students’ fees.”

The Coalition announced last month that the cap on tuition fees in England would soar from £3,290 this year to between £6,000 and £9,000 in 2012.

At the same time, direct funding for most university courses will be cut as responsibility for paying for degrees is transferred to individual students.

On Tuesday, Mr Andrews said universities in Wales would also be able to increase tuition fees to £9,000, but Welsh students would not be expected to bear the extra cost.

They will pay the same fees in 2012 as they do in 2010, it was disclosed, as the Government steps in to subsidise courses.

"Welsh domiciled students will not have to find either £6,000 or £9,000 to study,” he said. "The public purse will continue to subsidise higher education for Welsh domiciled students.”

He added: “Higher education should be on the basis of the individual's potential to benefit, and not on the basis of what they can afford to pay.”

The subsidy will apply to Welsh students taking courses anywhere in Britain. Some 69,690 students currently study in Wales and another 18,475 are at universities in England, Scotland and Northern Ireland.

English undergraduates taking courses in Wales will be expected to pay full costs.

Fees in Northern Ireland are currently capped at £3,290 and Stormont will consult on changes early next year.

Scottish students do not pay fees although a discussion document on possible reforms to the system will be published in coming weeks.

Sally Hunt, general secretary of the University and College Union, said: “I am pleased that the Welsh Assembly Government has recognised that access to higher education should be on based academic ability not ability to pay.

“It is a shame that the Coalition Government hasn’t grasped this reality and that it is persisting with its deeply flawed strategy.

“There is nothing fair or progressive about asking students to pay more for a university education and saddling them with a lifetime of debt.

“If fees are allowed to go up to £6,000 or more, England will be the most expensive country in the developed world in which to study at a public university.”